I would say they don’t want customers.
Customers who dress UP want others to do the same. I bet their business explodes! And hope so.
They don't want thugs, that's all. But they can't come right out and say, "no thugs" so they have to implement this convoluted dress code in an effort to discourage them.
And they want the type of customers who also don't want thugs. This is Chicago, after all.